Fonterra appoints new CFO
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
Fonterra farmers are cutting costs on farm and expect similar discipline from their co-operative.
Fonterra Co-operative Council chair John Stevenson says farmers are feeling a real squeeze with increased input costs and decreased returns.
He points out that, at the current forecast milk price range, many stand to make losses in the current financial year.
"Farmers tell me that they are being ruthless as they look at what is essential expenditure within their own businesses, and what is not," Stevenson told Dairy News.
"They have sent a clear message to council, which has been passed on to the Fonterra board chair, that they expect similar discipline within their co-operative when it comes to managing costs."
With Fonterra slashing its forecast range midpoint by $1 to $7/kgMS, many farmers are bracing for a loss this season.
According to Stevenson, depending on debt levels and internal cost structures, $7/kgMS is widely accepted as being below the cost of production. He believes farmers will likely be working closely with their banks as they look to fund current cashflow requirements.
One silver lining will be the upcoming $800 million capital return to shareholders this month.
Fonterra has also signalled a strong dividend - a result of lower milk price lowering the cost of production for value added products.
Stevenson ays Fonterra shareholders will be looking forward to the upcoming capital return and the prospect of a strong dividend as they consider how their businesses are funded at the current mid-point of the forecast milk price range.
OPINION: The recent Federated Farmers / Rabobank 2024 Farming Salaries Report revealed strong growth in farm salaries over the past two years.
The low unemployment environment is one of the key factors driving on-farm salaries higher over the past 24 months, says Rabobank general manager for country banking Bruce Weir.
Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.
A seminar on rural dispute resolution has been organised at Lincoln University, Christchurch this month.
The legacy of Dr Peter Snow continues to inspire as the recipients of the 2023 and 2024 Peter Snow Memorial Awards were announced at the recent National Rural Health Conference.
One of Fonterra’s global customers, Mars is launching an ambitious sustainable dairy plan to work with dairy farmers and cut emissions by 50%.
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
OPINION: It seems every bugger in this country can get an award these days.